Dodla Dairy (DODLA) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 consolidated revenue reached ₹10,250 million, up 13.7% YoY, driven by strong volumes despite challenging weather and elevated procurement costs.

• EBITDA margin was 7.7% and PAT margin 6.7%, with growth led by liquid milk and product sales, while bulk sales of SMP and butter dropped sharply.

• Africa operations delivered 34.5% revenue growth, with plans for greenfield expansion in Uganda and continued strong performance in Orgafeed.

• Acquisition of HR Food Processing Private Limited (Osam Dairy) was completed in August 2025 and consolidated from that date, impacting comparability with prior periods.

• One-time provision for revised labor code offset by a tax reversal, positively impacting PAT.

Financial highlights

• Q3 FY26 operating revenue: ₹10,250 million (up 13.7% YoY); 9MFY26 revenue: ₹30,507 million (up 8.5% YoY).

• Q3 FY26 EBITDA: ₹793 million (7.7% margin); 9MFY26 EBITDA: ₹2,546 million (8.3% margin).

• Q3 FY26 PAT: ₹687 million (6.7% margin); 9MFY26 PAT: ₹1,972 million.

• Gross margin declined to 26% from 28.2% YoY due to higher procurement costs and inability to fully pass on costs.

• Standalone revenue for Q3 FY26 was ₹8,215.26 million; standalone net profit was ₹568 million.

Outlook and guidance

• Margin pressure expected to persist in Q4 FY26, with improvement anticipated in summer as demand and pricing power return.

• Price hikes of ₹2–3/liter are planned as summer demand rises, targeting average realization of ₹63–64/liter.

• Value-added product (VAP) share targeted to reach 30–32% of revenue over the long term.

• Focus on operational efficiencies, especially in the OSAM business, and long-term growth in East Africa.

• The company continues to monitor regulatory changes, especially regarding the New Labour Codes, and will adjust accounting treatment as required.